War, Asset Bubbles, and the Next QE

Central bank chess will have many very serious real-life consequences, but it will also ignite one of the most powerful bull markets in precious metals history. War, Asset Bubbles, and the Next QE [Gerardo Del Real Photo] By [Gerardo Del Real]( Written Monday, April 10, 2017 I’ve written since last year that we are approaching a dangerous time that lends itself to war, volatility, and in many parts of the world, revolution. Dangerous because the “powers that be” — central banks, governments — that are usually in charge of manipulating order are the institutions actually causing the chaos this time. There were several important developments last week — some obvious, some not so obvious — that provide important clues as to how this may play out. The obvious event that everyone paid attention to was the 50-something barrage of missiles fired off at a Syrian air force base in what was said to be a response to the horrific chemical weapons attack that someone perpetrated on civilian men, women, and children. Although the missile strike was not said to be part of a permanent campaign in Syria there has clearly been a change in policy that Russia has been quick to denounce. Advertisement Hurry: Pot stocks to surge on April 10 On April 10, the government is set to make an announcement that will change the cannabis market forever. With the stroke of a pen, they’ll legalize pot for medical AND recreational use... And instantly create a multibillion-dollar market, sending a select group of pot stocks surging 1,000% overnight. We’ve narrowed it down to the three most lucrative pot opportunities primed to soar. I urge you not to wait any longer. [Click here to started.]( The response wasn’t exactly sugarcoated either. A statement issued on Sunday — and reported by Zero Hedge — by a joint command centre consisting of forces of Russian, Iranian, and allied militia supporting Syrian President Bashar al-Assad said that Friday's U.S. strike on the Syrian air base crossed “red lines” and it would "respond with force" to any new aggression while increasing its level of support to its ally. Not exactly the friendly tone that once existed between Putin and Trump. In the statement published by the group on media outlet Ilam al Harbi, the pro-Assad alliances said that “what America waged in an aggression on Syria is a crossing of red lines. From now on we will respond with force to any aggressor or any breach of red lines from whoever it is and America knows our ability to respond well.” There is great potential for a rapid escalation of hostilities because of what’s at stake: Commodities and natural gas. [competing pipelines] Advertisement I’m not a "gold bug." I don’t bury it in my yard, and I don’t necessarily view it as the ultimate "safe harbor" investment like some do. But after 10 years in the money industry, I’ve discovered there’s one absolute truth... Gold makes people rich. It’s a fact. It can’t be disputed. Thing is, there is one thing you MUST know about gold... It’s something I’ve told my high net worth clients, and it’s something I’m going to tell you TODAY. [Click here for the full details.]( The map shows the competing Shia (Russia-backed) and Sunni (U.S.-backed) gas-pipelines into Europe. Robert F. Kennedy Jr. wrote an excellent piece titled “Syria: Another Pipeline War" that explains in detail the players and the game. You can read that [here](. The immediate response by the precious metals was predictable: higher gold and silver prices. Gold briefly touched the $1,270 per ounce level before giving up nearly all of the gains. Silver rocketed to $18.43 an ounce before closing at $17.96 an ounce, down 1.54%. The not-so obvious developments that merit attention were the ADP jobs report on Wednesday and the Fed minutes that followed later in the day. Data showed that U.S. companies added 263,000 workers in March, the most since December 2014 and well above economists' expectations of 187,000. Two statements in the minutes stood out. “Most Federal Reserve policymakers think the U.S. central bank should take steps to begin trimming its $4.5 trillion balance sheet this year as long as the economic data holds up, Fed meeting minutes showed. "The minutes also showed “some participants viewed equity prices as quite high relative to standard valuation measures.” Both statements are important because they lend credence to how I speculate the next 12 months will play out. The major U.S. stock market indices will continue higher and the dollar will surge higher, fueled by capital flight out of Europe and Japan. The market is forward looking and I believe it’s starting to recognize the likely path forward. The whispers of asset bubbles will grow louder and force the Fed to continue its policy of rate hikes while simultaneously beginning to trim the $4.5 trillion balance sheet. The market will call the Fed’s bluff if it appears Fed chairwoman Janet Yellen is serious about trimming the balance sheet. Advertisement Why billionaires have him on speed dial Most people think you can only make money on gold when prices are rising... But a Texas man has discovered a way to make money on gold even when it's falling in price. And he does it by finding these little-known “glitches” in the gold markets. Spot them, and you can score triple-digit gains in very little time at all... even in bear markets. [Go here now for the full story.]( Any resemblance to a 2008 market collapse will force the Fed to reverse course and once again “stabilize” markets. Stabilize how? More QE. It may come in the form of another name but it will be more of the same. There are three ways to get out of the debt problem. You grow your way out of it (not happening), you let free markets be free markets (anyone up for breadlines and a 30s-style depression? Didn’t think so), or you inflate your way out of it and further devalue the currency. The prequel will be the soft launch of further rate hikes and a slimmer balance sheet. It starts with the rhetoric which has now been introduced in official “Fed speak” via the most recent Fed minutes. The short-mid-term reaction will be what we saw last week. Higher dollar, lower precious metals prices, and lower bond yields in the U.S. This will be short-lived, however, and the reaction by central banks worldwide will lead to a high-stakes game of central bank chess that will unfortunately have many very serious real-life consequences, but it will also ignite one of the most powerful bull markets in precious metals history. A bull market that is the reason I launched [Resource Stock Digest Premium]( and [Resource Stock Digest Trader]( when I did. The first full year of RSDP, which is coming up soon, was all about positioning for that market. Although we’ve done well, the service wasn’t launched for 50%, 60%, or 120% gains, it was launched for the gains of years to come. In the meantime, I’ll keep bringing companies to you that will do well in the current environment and the launch of RSDT this year is the perfect complement to take advantage of the volatility that will accompany this period. Be ready. To your wealth, [gerardo-sig] Gerardo Del Real Editor, [Resource Stock Digest Premium]( and [Trader](. For the past decade, Gerardo Del Real has worked behind-the-scenes providing research, due diligence and advice to large institutional players, fund managers, newsletter writers and some of the most active high net worth investors in the resource space. Now, he is bringing his extensive experience to the public through [Outsider Club](, [Resource Stock Digest Premium](, and [Resource Stock Digest Trader](outsiderclub.com/pubs/rsdt). For more about Gerardo, check out his [editor page](. *Follow Outsider Club on [Facebook]( and [Twitter](. Enjoy reading this article? [Click here]( to like it and receive similar articles to read! Browse Our Archives [Why are Sonoma County Vineyards Ripping Up Vines?]( [You Have Until MONDAY (I’m Not Kidding)]( [Who's Laughing Now?]( [GDP Revision Hides A Nasty Truth, and Sinking Markets Entrench]( [Central Bank Chess?]( Related Articles [U.S. Pure Carbon Production: 0%]( [Central Bank Chess?]( [Gold’s Magic Number]( This email was sent to {EMAIL} . It is not our intention to send email to anyone who doesn't want it. If you're not sure why you've received this e-letter, or no longer wish to receive it, you may [unsubscribe here](, and view our privacy policy and information on how to manage your subscription. To ensure that you receive future issues of Outsider Club, please add ww-eletter@angelnexus.com to your address book or whitelist within your spam settings. For customer service questions or issues, please contact us for assistance. [Outsider Club](, Copyright © 2017, [Angel Publishing LLC]( & Outsider Club LLC, 111 Market Place #720, Baltimore, MD 21202. For Customer Service, please call (877) 303-4529. All rights reserved. [View our privacy policy here.]( No statement or expression of opinion, or any other matter herein, directly or indirectly, is an offer or the solicitation of an offer to buy or sell the securities or financial instruments mentioned. Angel Publishing and Outsider Club does not provide individual investment counseling, act as an investment advisor, or individually advocate the purchase or sale of any security or investment. Subscribers should not view this publication as offering personalized legal or investment counseling. Investments recommended in this publication should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company in question. This letter is not intended to meet your specific individual investment needs and it is not tailored to your personal financial situation. Nothing contained herein constitutes, is intended, or deemed to be – either implied or otherwise – investment advice. Neither the publisher nor the editors are registered investment advisors. This letter reflects the personal views and opinions of Nick Hodge and that is all it purports to be. While the information herein is believed to be accurate and reliable it is not guaranteed or implied to be so. Neither Nick Hodge, nor anyone else, accepts any responsibility, or assumes any liability, whatsoever, for any direct, indirect or consequential loss arising from the use of the information in this letter. The information contained herein is subject to change without notice, may become outdated and may not be updated. Nick Hodge, entities that he controls, family, friends, employees, associates, and others may have positions in securities mentioned, or discussed, in this letter. No part of this letter/article may be reproduced, copied, emailed, faxed, or distributed (in any form) without the express written permission of Nick Hodge or the Outsider Club. Unauthorized reproduction of this newsletter or its contents by Xerography, facsimile, or any other means is illegal and punishable by law.